Marc Johnson, M Partners (8/25/11) "Timmins Gold Corp. is increasing production capacity at its San Francisco Gold Mine in Sonora, Mexico to 100 Koz./year Au by Q411. . .meanwhile, an aggressive 9-drill exploration program is delivering up to 20,000m per month in support of a significant resource update in Q311 and at year-end which could define a +10-year life of mine. . .drill results confirmed continuity of mineralization beneath and surrounding the perimeter of the current pit boundaries; this adds to previous results indicating a 600m extension to the east and 100m at depth. . .we added an exploration premium of $35M to our NAV (
.25/share) based on encouraging drill results at San Francisco, which should support a significant resource expansion; we are maintaining our Buy recommendation and increasing our target price to $3.75/share